Corporate Social Responsibility and Financial Information

Gavancha, Irina Filipa Manjúa Diogo; Paiva, Inna

doi:10.4018/978-1-7998-2128-1.ch001

Cited by 3 publications

(3 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In accordance with the legitimacy theory, companies share their social responsibility information with their stakeholders and legitimize their activities in this field (Gavancha and Sousa Paiva, 2020). CG can be a key to fill possible legitimacy gaps with more CSR disclosures (Mio et al , 2015).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Women board members’ impact on ESG disclosure with environment and social dimensions: evidence from the European banking sector

Gürol

Lagasio

2022

SRJ

View full text Add to dashboard Cite

Purpose This study aims to investigate the relationship between banks’ board structure and sustainability performance. Design/methodology/approach The empirical quantitative paper covers a sample of 35 European banks that are listed at the EUROSTOXX 600. Regression analysis techniques were used in the analyses. Findings Results indicate that board size, women ratio and independent directors ratio on board are positively and significantly related to environmental social governance (ESG), E and S disclosure scores. Also, we find that ESG disclosure is related to bank profitability. Practical implications Findings have implications for both policymakers and practitioners (bankers and investors). Large bank boards, which have women and independent members, could perform better in terms of ESG disclosure. The results also show that large banks and banks with high borrowing care more about sustainability. For banks to reach resources, they should perform well in terms of sustainability disclosure to their stakeholders. Social implications Banks should observe academic findings on corporate governance (CG) practices, which lead to a better ESG disclosure to structure their CG to improve at the best their disclosure policies: they should prefer larger boards with a high level of women and independence. In addition, we attach importance to the ESG performance of the banking sector due to its fund transfer functions. Banks transfer the deposits they collect to those in need of funds as loans. For this reason, it is important to which sector and which business they give credit. The importance of banks on ESG and their adoption of sustainability dimensions also affect their credit decisions. Originality/value This study examines the relationship between banks’ board structure variables and their effect on ESG, E and S scores separately. This study thinks that the G score can be a handicap for ESG-CG relations. Because chosen CG variables (women ratio, independent ratio, board size) affect G scores positively and can reason for positive ESG-CG relation. The environmental and social impact of women ratio, independent ratio and board size can be seen in this study.

show abstract

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Women board members’ impact on ESG disclosure with environment and social dimensions: evidence from the European banking sector

Gürol

Lagasio

2022

SRJ

View full text Add to dashboard Cite

show abstract

“…Timely and relevant disclosure will help them in taking key decision during this crisis time. Legitimacy theory signifies that companies tend to report socially responsible information so that they can legitimize their behaviors to their stakeholder groups (Gavancha and Paiva, 2020). The legitimacy theory is used to describe social and environmental reports disclosure but it can be used in corporate report, suggested by Woodward et al (1996), as one possible legitimacy/accountability reporting framework, to communicate with the shareholders (Damaso and Lourenço, 2001).…”

Section: Legitimacy Theory and Accounting Disclosurementioning

confidence: 99%

“…Tsang (2001), Ogden and Clarke (2005) have explored corporate report behavior and concluded that organizations use such reporting for legitimacy purposes. It is theoretical stance that predicts companies' behavior toward managing and maintain the perspectives of key stakeholders though company disclosure (Gavancha and Paiva, 2020). Schiopoiu Burlea and Popa (2013) has identified role of legitimacy theory in explaining behavior of organization in providing voluntary disclosures in any jumpy economic environment condition like the COVID-19 pandemic.…”

Section: Legitimacy Theory and Accounting Disclosurementioning

confidence: 99%

Impact of COVID-19 pandemic on financial reporting and disclosure practices: empirical evidence from Bangladesh

Sultana

Ghosh

Sen

2021

AJEB

View full text Add to dashboard Cite

PurposeTo investigate the consequence of COVID-19 pandemic on the financial reporting and disclosure (FRD) practices, the study has been conducted. Moreover, this paper highlights the significance of FRD practices in any emergency period and its relevance with legitimacy theory in Bangladesh Perspective.Design/methodology/approachThe COVID-19 pandemic has adverse impact on business. Hence, all the business activities have been categorized into five major aspects which are financial factors, business operations, business contracts, business value and stakeholders. These five major activities have been considered as independent variable. By analyzing various policy recommendations and guidelines of global and local accounting bodies, a structured questionnaire was developed in association with related IAS and IFRSs. Then, it was distributed among the accounting professionals of Bangladesh who are currently engaged in financial statement preparation and auditing services. Finally, data was analyzed through structural equation modeling (SEM) to test the hypothetical relationship between dependent variable and independent variable.FindingsThis study finds that financial factors, business contracts and stakeholders have significant relationship with the financial reporting and disclosure practices during the COVID-19 pandemic period. However, business operation and business value have no significant relationship with financial reporting and disclosure practices.Research limitations/implicationsThis study tries to analyze why and how firms should disclose essential information (both financial and non-financial) to the financial statement users during the COVID-19 pandemic. This study can be used as benchmark to issue a separate policy or standard for reporting any kind of adverse event in the financial reporting and disclosure practices.Originality/valueTo our best knowledge, we believe that this is first kind of study undertaken to investigate the consequence of COVID-19 pandemic on the FRD practices in the context of Bangladesh. This study is kind of exploratory in nature. Hence, future studies can explore industry-based financial reporting and disclosure practice in any pandemic period.

show abstract

Corporate board structure and ESG performance: An empirical study of listed firms in the emerging market

Bhat

Makkar

Gupta

2023

CGSR

View full text Add to dashboard Cite

Corporate boards are one of the crucial factors for the organization to focus on environmental, social, and governance (ESG) activities of firms. ESG operations provide insight into the social and environmental viability of companies. The impact of board structure on ESG varies per nation based on their economic situation and business policies. In developed nations, corporations implement ESG norms in their business strategies voluntarily, however, in India, these practices are mandated for a subset of companies. This became the motivation for the authors to explore the nexus between existing corporate board structure and ESG practices. The sample has been taken from the listed firms of the Nifty-500 index spanning the period of 10 years from 2012 to 2022. Dynamic panel data estimations are applied through a fixed effect model. The findings revealed that chief executive officer (CEO) duality has a significant negative relationship with ESG performance which goes against the belief of stakeholder theory. Whereas board size, board independence, and board qualification have a significant positive influence on ESG performance. Further findings revealed that board size has no significant effect on governance performance. Policymakers should enact new regulations on the CEO’s position in the organization, to make corporate governance responsible for improved sustainable and ESG performance.

show abstract

Corporate Social Responsibility and Financial Information

Cited by 3 publications

References 34 publications

Women board members’ impact on ESG disclosure with environment and social dimensions: evidence from the European banking sector

Women board members’ impact on ESG disclosure with environment and social dimensions: evidence from the European banking sector

Impact of COVID-19 pandemic on financial reporting and disclosure practices: empirical evidence from Bangladesh

Corporate board structure and ESG performance: An empirical study of listed firms in the emerging market

Contact Info

Product

Resources

About